Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training

Fairlie, Robert

Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training

Santa Cruz Department of Economics, Working Paper Series from Department of Economics, UC Santa Cruz

Abstract: Theories of market failures and targeting motivate the promotion of entrepreneurship training programs and generate testable predictions regarding heterogeneous treatment effects from such programs. Using a large randomized evaluation in the United States, we find no strong or lasting effects on those most likely to face credit or human capital constraints, or labor market discrimination. We do find a short-run effect on business ownership for those unemployed at baseline, but this dissipates at longer horizons. Treatment effects on the full sample are also short-term and limited in scope: we do not find effects on business sales, earnings, or employees.

Keywords: Business; entrepreneurship; training; random experiment; evaluation; self-employment (search for similar items in EconPapers)
Date: 2014-08-06
New Economics Papers: this item is included in nep-ent and nep-exp
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Citations: View citations in EconPapers (5)

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